NZD/USD Technical Analysis: Double Bottom Taking Shape?
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- NZD/USD Technical Strategy: Flat
- Support: 0.7682, 0.7602, 0.7469
- Resistance:0.7792, 0.7831, 0.7937
The New Zealand Dollar may be preparing to move higher against its US namesake after putting in a Bullish Engulfing candlestick pattern. A daily close above channel top resistance at 0.7792 exposes the 14.6% Fibonacci retracement at 0.7831. Alternatively, a reversal below the July 2013 bottom at 0.7682 opens the door for a test of the 38.2% Fibonacci expansion at 0.7602.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com